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Kenyan Exchange to promote cross-listing of foreign firms to boost capital market liquidity

The Nairobi Securities Exchange (NSE) said Wednesday it will promote cross-listing of foreign companies in order to boost the liquidity of the capital market.

Geoffrey Odundo, CEO of NSE told Xinhua in Nairobi that so far public companies from Rwanda and Uganda have listed and issued their shares to domestic investors.

“We are very keen on inbound cross-listing from Africa and beyond for companies that are willing to transfer shares to locals so as to boost our market liquidity,” Odundo said.

The NSE said that it is currently in discussions with a European firm that has expressed interest in cross-listing into the Kenyan capital market.

“We are still at the early stages of talks but the firm should be listed locally by the end of the year,” Odundo said.

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He said that the country is keen to have foreign corporations that are operating domestically to issue their equities at the local bourse.

He added that international firms that sell their shares to locals get exposure in the country by building their profile among domestic investors.

He observed that Kenya as a regional financial hub is an attractive destination for foreign firms because it is a gateway to Africa’s investors and consumers.

Odundo noted that a number of Kenya firms have also cross-listed into securities exchanges in the East African region.

Source: Xinhuanet

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